India's Islamic community livid at security drill where militants dressed as Muslims

(Photo: REUTERS / Danish Ismail)A Kashmiri Muslim boy holds onto a fence as he looks at a relic of Prophet Mohammad being displayed to devotees during the festival of Eid-e-Milad at Hazratbal shrine on the cold winter morning in Srinagar January 4, 2015. Thousands of Kashmiri Muslims on Sunday morning thronged to the shrine of Hazratbal, which houses a relic believed to be a hair from the beard of Prophet Mohammad, to celebrate Eid-e-Milad or the Prophet's birth anniversary

India's Islamic community are outraged at mock security drills by authorities in Prime Minister Narendra Modi's home state of Gujarat after police had fake "militants" dress up and act as Muslims.

"It's wrong to link religion with terrorism. The issue has been resolved and the matter should be put to rest now. The mistake has been rectified," the chief minister said.

Police issued an apology, explaining the incident was an "avoidable situation," but not after attempting to shrug off the criticism.

They argued that the skullcaps that the actors wore had been used to "to give them a different look."

"This was a mistake and should not have happened," Surat police chief Pradeep Sejul was quoted as saying.

Narmada police officials on the other hand pledged to investigate the incident.

"If such an incident has happened, we will conduct an inquiry and take necessary actions against those responsible," district police official Jaypalsinh Rathore told the Press Trust of India.

Kamal Faruqui, one of the Muslim leaders who felt insulted by the police action, demanded an apology from authorities, pointing out that the exercise appeared to be profiling Muslims.

"They should apologize, otherwise they should be taken to the court," Faruqui said in a television interview.

Modi has been watched closely as to how his government handles religious minorities since he assumed office last year in the majority Hindu country.

The prime minister has been accused of allowing religious intolerance to persist due to his deafening silence regarding the issue.

Since he took office last year, Modi has spoken about inclusiveness, but his Bharatiya Janata Party (BJP) which has hardline Hindu elements has been at the forefront of alleged forced conversions of Muslims and Christians.

Recently, a government minister had been embroiled in controversy after using an abusive term to refer to non-Hindus. Modi castigated Niranjan Jyoti's remarks, but stopped short of dismissing her from government.